\ United states

y Department of

/ Agriculture

Economic

Research

Service

Rural

Development

Research

Report No. 84

The Farm

Entrepreneurial

Population, 1988-90

Margaret A. Butler
Cover photo © John Cromartie and Robert Gibbs

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The Farm Entrepreneurial Population, 1988-90. By Margaret A. Butler, Agriculture and Rural Economy Division, Economic Research Service, U.S. Department of

Agriculture. Rural Development Research Report No. 84.

Abstract

About 5.7 mulion people lived in households affiliated with a farm business in 1990

compared with almost 4.6 million in the farm population as conventionally defined

by place of residence. The economically defined group, called the farm entrepreneurial population, includes people who derive all or part of their livelihood

from farm operations but do not necessarily live on a farm. This report analyzes census data on income, education, and other characteristics of the group identified by

farm occupation and farm self-employment income criteria.

Keywords: Farm entrepreneurial population, farm operator population, farm-income-only population, demographic characteristics, social characteristics, economic

characteristics, households, families

Acknowledgments

The author thanks Linda Swanson, Economic Research Service (ERS), U.S. Department of Agriculture (USDA), for her guidance, critical review, and comments. Appreciation is also extended to Calvin Beale, Laami Dacquel, Judith Kalbacher, and

David McGranahan, ERS, USDA, for constructive comments and review. The

author also thanks Linda Hatcher, Economics Management Staff, USDA, for

editorial assistance.

1301 New Yoric Avenue, NW.

Washington, DC 20005-4788 February 1993
Contents

Summary ....,., iii

Introduction .._... ... _ 1

Meüiod of Identification ,.,,, 1

Regional Distribution ,..._.. , 3

Racial and Ethnic Characteristics . _ . .^ 3

Sex and Age _ , _ ... 4

Education ., , 5

Labor Force Participation, 6

Agricultural and Nonagricultural Employment 6

Unemployment ...., = .. , 7

Household and Family Structure 7

Farm Entrepreneurial Households 8

Farm Entrepreneurial Families , 10

Income 11

Household Income 11

Family Income 11

Poverty 13

Sources of Income 13

Conclusions. 17

References. 17

Appendix I: Definitions and Explanations. 17

Appendix II: Source and Reliability of Estimates 19

Appendix III: Characteristics of Farm Operators and Farm

Income Recipients Only 19

Appendix IV: Tables for 1988 and 1989 21
Summary

About 5.7 million people lived in households affiliated with a farm business in 1990

compared with almost 4.6 million in the farm population as conventionally defined

by residence. The economically defined group, called the farm entrepreneurial population, includes people who derive all or part of their livelihood from fanning but do

not necessarily live on a farm. This report analyzes data from the Census Bureau's

March Current Population Survey for 1990 on income, education, and other characteristics of the farm entrepreneurial population.

Since first counted in the 1920 census, the fann population has been defined as people who live on farms or ranches, regardless of occupation or income. Today, some

people live on farms but work in nonagricultural occupations, and some people who

operate farms or derive income from their farms do not live there. This report quantifies and describes the ch^acteristics of those who have business ties to farming but

do not necessarily live on farms.

The farm entrepreneurial population consists of people who live in households in

which someone's primary occupation is operating or managing a faim, or in which

someone receives income from self-employed farming.

Findings include the following:

•

•

•

Most farm people were white males. The median age of the farm entrepreneurial

population in 1990 was 34.8 years, which was older than the national median age

of 32.7 years.

Educational attainment among farm people varied by sex. Females in üie farm entrepreneurial population were more likely than their male counterparts to continue

their education beyond high school.

The farm population ranked high in labor force participation and low in unemployment in 1990. About 3.4 million farm en^epreneurs were in the labor force,

with an unemployment rate ofjust 2.6 percent. Over 50 percent of people in farm

entrepreneurial households worked in nonagricultural industries.

The median income of farm entrepreneurial families was $34,138 in 1989, less

than one-half of 1 percent t^low the national average. The poverty rate for farm

families was 9,1 percent, but fewer than 1 percent received welfare benefits. TTie

national poverty rate was 10.3 percent with 5 percent on welfare. The main

sources ofincome for farm entrepreneurial families were farm self-employment

and wages and salaries earned from farm or nonfarm jobs.

• The farm fK)pulation's social structure was more traditional and homogeneous

than that of the total population. Of the 1,7 million farm entrepreneurial families,

94 percent were headed by married couples. Only 2.8 percent of families were

headed by women. Largely because of the population's older age structure, more

thmi half of all farm families had no children of their own living at home.

This report also contains tables for revised 1988 and new 1989 data on the farm entrepreneurial population.

m
The Farm Entrepreneurial

Population, 1988-90

Margaret A. Butler*

Introduction

In March 1990, approximately 5.7 million persons, or

2.3 percent of the total population, lived in households

associated with the operation of farms, as indicated

by a household member's occupation or source of income. The 1990 estimate of the farm entrepreneurial

population was unchanged from previous years (table

1). Based on the conventional farm residence definition, there were an estimated 4.6 million persons living on farms in 1990 (USDC and USDA, 1992).^

Since first separately counted in the 1920 census, the

farm population has been defined as people living on

farms or ranches, regardless of occupation or source

of income. At that time, the vast majority of people

tied to farming lived on farms. But rural life became

more diverse, as agricultural science and technology

cut labor requirements and off-farm job opportunities

grew. As a result, the majority of people who live on

farms today are not employed primarily in agriculture

(55 percent in 1990), and those employed in agriculture often do not live on farms (66 percent in 1990).

Thus, the farm residence approach has lost much of

its former validity. Alternative criteria for identifying

farm-related people and the differences in the criteria

used are detailed elsewhere (Banks, Butler, and Kalbacher, 1989).

To provide more complete coverage and a more precise concept, this report identifies the farm population

based on farm operator or manager occupation and/or

self-employment income from farming. This group

and its household members are called the farm entrepreneurial population. Data are presented on the

social, economic, and demographic characteristics of

the total farm entrepreneurial population and its com-

*The author is an economist in the Agriculture and Rural Economy

Division» Economic Research Service, U.S. Department of Agriculture.

Names in parentheses refer to sources listed in the References section.

ponents for 1990, Revised 1988 and new 1989 data

appear in appendix IV.

No attempt is made here to identify the population associated with hired farmworkers. Many persons who

do hired farmwork have only a tenuous connection

with farming based on short-term seasonal work, and

are also incompletely identified by occupational survey

questions unless the questions relate to an entire year.

Such questions were asked in the Agricultural Work

Force Survey for 1987, which estimated the population

of hired farmworker households (Oliveira and Cox,

1989). This survey has since been discontinued. The

objective in this report is to define and characterize in

its own right the population of farmer households.

Method of identification

Data used to identify the farm entrepreneurial population in 1990 were drawn from the public-use computer files ofthe March Current Population Survey

(CPS), conducted annually by the Bureau of the Census, U.S. Department of Commerce, The household

is the unit of observation and consists of all persons

who occupy a given housing unit. A house, an apartment, a group of rooms, or a single room are all considered housing units when occupied as separate

living quarters.

People who fell into tiie CPS farm occupation and

farm self-employment income categories were combined with members oftheir households to form the

farm entrepreneurial population analyzed in this report. Definitions of these CPS categories are as

follows:

• Farm operator population: All persons living in

households where at least one member is employed

primarily as a farm operator or farm manager. A
household is also included if at least one unemployed member indicated that his or her last fulltime job was farm operator or farm manager. An

advantage in using occupation as a criterion is that

tiiere is no residence requirement, enabling those

who farm but live off-farm to be included. A shortcoming is that, except for the CPS December sup=

plement, which lacks detailed demographic data,

CPS employment data refer only to a respondent's

primary occupation. Households in which one or

more members have only part-time, secondary jobs

in farming are missed, unless anoüier member

works primarily as a farmer.

• Farm income population: Persons in households

with at least one memter who received farm selfemployment income in the preceding year. Farm

self-employment income is net money income

(gross receipts minus operating expenses) from

the operation of a farm received by a percon on his

or her own account, as an owner, renter, or sharecropper. This criterion also has no residency requirement but misses households of people who

run incorporated farms.

The total farm entrepreneurial population consisted of

all persons in households identified by either or both

of the farm occupation and farm income criteria. The

two populations overlapped substantially; households

often qualified under both criteria (fig. 1). Because

most farm operators were self-employed as fanners

Üie preceding year, about 51 percent of the total farm

entrepreneurial population was in households with

both a farm operator or manager and a farm self-employment income recipient. Forty percent ofthe farm

entrepreneurial population was in households where

one or more persons received farm self-employment

income and no one was primarily employed as a farm

operator or farm manager. The remaining 9 percent

resided in households with an operator or manager

but had no reported farm self-employment income.

Ulis report focuses on characteristics of the entire

fann entrepreneurial population. The components of

this population are farm operators or farm self-employment income recipients, their families, and other

household members. Some data are available on characteristics of farm operators and farm income recipients alone (see app. III).

Table 1—Farm entrepreneurial population, families, and households, 1986-90^

Item 1986

Population 5,650

Income oniy^ 2,128

Operator only^ 520

Income and operator 3,002

Families 1,633

Income only 606

Operator only 149

Income and operator 878

Households 1,824

Income only 668

Operator only 174

Income and operator 982

Farm operators and farm

self-employment Income recipients:

Farm operators 1,288

Farm income recipients only 759

1987 1988 1989

Thousands

5,700

2,142

631

2.926

5,715

2,336

508

2,871

5,702

2,349

533

2,820

1,671

638

196

837

1,661

669

139

853

1,667

664

158

845

1,856

703

212

940

1.859

763

171

926

1,848

752

177

918

1,286

761

1,247

852

1.223

853

1990

5,705

2,291

518

2,895

1,671

657

159

854

1,861

752

172

936

1,267

852

Totals may not add due to rounding. 1

^Persons receiving farm self-employment income and no one is primarily employed as a farm operator or farm manager.

^Persons primarily employed as a farm operator or farm manager but who receive no reported farm self-employment income.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.
Regional Distribution

Slightly more than half of the farm population lived

in the South in 1950, and about one-third lived in the

Midwest (USDC and USDA, 1992), But mechanization of cotton production and the near abandonment

of the share-tenant system of farming resulted in

heavy movement of people off the farm and a smaller

southern share of the total farm population.

By 1990, as measured by the entrepreneurial

definition, 45 percent of the farm population lived

in the Midwest, although less than a quarter of the

Nation's total population lived in that region (table 2

and fig. 2). The South had the second largest

share, at 32 percent of the farm entrepreneurial

population.

Southerners in the farm entrepreneurial population

were more likely than their counterparts elsewhere to

receive farm self-employment income without having

a primary farm occupation. TTiirty=ñve percent of

the farm-income-only population lived in the South

compared with 30 percent of the farm operator

population. This reflects the more frequent smallscale nature of southern fanning and the greater reliance on off-farm work as the chief source of

employment.

Racial and Ethnic Characteristics

Few minorities operated farms in the United States

in 1990. An estimated 1.6 percent of the farm

entrepreneurial population was black, and 2.6 percent was of Hispanic origin (table 3). Most minorities in agriculture were hired farm wage and

salary workers. About 77 percent of blacks in

agriculture were wage and salary workers. Eightynine percent of Hispanics with an agricultural

œcupation were wage and salary workers (USDC,

1986-90).

Figure 1

Composition of the farm entrepreneurial population, 1990

Percent

100-

Farm occupation only

Total farm entrepreneurial

population, 5.7 million

persons

Farm occupation population,

3.4 million persons

Farm income population,

5.2 million persons

Source: U.S. Department of Commerce, Bureau of the Census. Current Poputókxi Survey, March 198S-90. Ur^Wshed tabujatbns developed by the U.S. Dept. Agr., Eoon. Res. Serv.
Sex and Age

Males outnumbered females in the farm entrepreneurial population in 1990, with 111 males for every 100

females compared with about 95 males per 100 females in the total U.S. population (USDC, 1986-90).

The ratio was even higher in the farm operator population, where there were 117 males for every 100 females.

The historical movement of young adults off farms

significantly altered the age structure of farm people.

The farm entrepreneurial population is older than the

population nationwide. The median age in 1990 was

34.8 years (table 3) compared with 32.7 years for the

total population (USDC, 1986-90).

Persons of prime working age (25-44 years old) constituted only 29.1 percent of the farm population in

1990. In contrast, 32.7 percent of the total U.S. population was in this age group. The initial capital investment needed for modem farming and the drop in the

number of farms brought about by productivity gains

Table 2—Regional distribution of the farm entrepreneurial population, 1990^

Region Total

Total

Northeast

Midwest

South

West

5.705

408

2,587

1.831

879

Farm

operator

'Thousands3.413

263

1,621

1,022

508

Farm

income

only

2,291

145

966

809

372

Total Farm

operator

100.0

7.2

45.3

32.1

15.4

-Perœnî"

100.0

7.7

47.5

29.9

14.9

Farm

income

only

100.0

6.3

42.2

35.3

16.2

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.

Figures

Regional distribution of the population, 1990

Northeast

7.2%

Farm entrepreneurial population U.S. population

Source; U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations developed by

the U.S. Dept. Agr., Econ. Res. Serv.
have slowed the entry of young people into farming. There were 3.4 million farms in 1965. By

1990, the number had fallen to 2.1 million (USDA,

1990).

Because of the slower entry of young people into

farming, persons 45-64 years old constituted a

much higher share of the work force in the farm

entrepreneurial population than in the total population

(26.2 versus 18.9 percent). Retirement-age people,

those 65 years and older, accounted for only 9.1

percent of üie farm entrepreneurial population and 12

percent of the total population in 1990. The lower

representation of retirement-age people in the farm

population is forced partiy by the employmentoriented definition used in this report. To be

counted among the farm entrepreneurs, a person

needed currcnt or recent employment as a farm

operator or manager or needed farm self-employment income.

Education

In 1990, farm entrepreneurs were more hkely than the

general population to complete high school and just

as likely to attend college. Of the farm entrepreneurial population aged 25 years and over, 45

percent had completed only high school (table 4). An

additional 38 percent had completed at least 1 year of

college. In comparison, 38 percent ofthe U.S. population had completed only high school and an additional 39 percent had 1 or morc years of college.

Women in the farm entrepreneurial population were

much more likely than all U.S. women to have completed high school. Farm entrepreneurial women

were also more likely than either farm entrepreneurial

males or total U.S. males to be high school graduates.

Only 14 percent of farm women did not complete

high school compared with 19 percent of farm men

and 22 percent each of men and women in the general

Table 3—Characteristics of the farm entrepreneurial population, 1990^

Characteristic Total Farm

operator

Farm

income

only

Total Farm

operator

Farm

income

only

—Thousands— —-Perœnt—-

Total 5.705 3,413 2,291 100.0 100.0 100.0

Male 3,007 1,840 1,167 52.7 53.9 50.9

Female 2,698 1,574 1,124 47.3 46.1 49.1

Race and Hispanic origin:

White 5,545 3,346 2,199 97.2 98.0 96.0

Black 91 41 50 1.6 1.2 2.2

Hispanic origin^ 151 81 70 2.6 2.4 3.1

Age (years):

Under 18 1,534 936 599 26.9 27.4 26.1

18-64 3,654 2,096 1,558 64.0 61.4 68.0

18-24 505 276 229 8.9 8.1 10.0

25-34 827 517 310 14.5 15.1 13.5

35-44 831 446 385 14.6 13.1 16.8

45-54 780 444 336 13.7 13.0 14.7

55-64 711 413 298 12.5 12.1 13.0

65 and over 517 382 135 9.1 11.2 5.9

Median age

Years

34.8 34.6 35.2

— = Not applicable.

^Totals may not add due to rounding.

^Persons of Hispanic origin may be any race.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.
population. College attendance was more common

for females in the farm entrepreneurial population and

for males in the general population. Males in üie

farm entrepreneurial population were as likely as females in the general population to attend college

(36.1 percent and 36.5 percent).

Labor Force Participation

Nearly 78 percent of the farm entrepreneurial population aged 16 years and older participated in the labor

force in March 1990 (table 5) compared with 66 percent of tiie total U.S. population (USDC, 1986-90).

Both men and women in the general population had

lower labor force participation rates (75.4 percent and

57.2 percent) than their farm counterparts (87.9 percent and 66.5 percent). Within the farm population,

men in farm operator households were more likely to

participate in the labor force than men in farm-income-only households.

Agricultural and Nonagricultural Employment

Men in farm operator households were overwhelmingly (88 percent) employed in agriculture (table 5),

as expected in view of the occupational basis used to

identify the group. However, only 36 percent of

women in the farm operator population worked in agriculture. Few of the farm-income-only population

were primarily employed in agriculture.

Most employed women in the farm operator population (over 60 percent) worked in nonfarm jobs.

About 94 percent of employed women in fann-income-only households worked in nonagricultural

industries.

Nonagricultural Industries

Farm entrepreneurial persons working primarily in

nonagricultural industries were concentrated in professional and related services, trade, and manufacturing

industries (table 6). Women were far more likely

Úian men to be employed in professional and related

services (41.1 percent compared with 13.6 percent).

Trade was the leading industry for men.

Nonagricultural Occupations

Even among people hving on farms, off-farm employment is not uncommon. Forty-six percent of employed farm entrepreneurial people living on farms

had a nonfarm occupation as their primary job in 1990.

Nearly 35 percent held technical occupations, and

roughly 25 percent held managerial positions (fig. 3).

Table 4—Education of the farm entrepreneurial population aged 25 years and over, 1990^

Education level Total Farm

operator

Farm

income

only

Total Farm

operator

Farm

income

only

—Thousands— —Perœnt-—

Total

Not high school graduate

High school graduate

Some college or more

3,666

608

1.652

1,405

2,202

417

1,031

753

1,464

191

621

652

100.0

16.6

45.1

38.3

100.0

18.9

46.8

34.2

100.0

13.0

42.4

44.5

Males

Not high school graduate

High school graduate

Some college or more

1,931

371

862

698

1,177

270

540

367

753

102

321

331

100.0

19.2

44.6

36.1

100.0

22.9

45.9

31.2

100.0

13.5

42.6

44.0

Females

Not high school graduate

High school graduate

Some college or more

1,735

237

791

707

1,024

147

491

386

711

90

300

321

100.0

13.7

45.6

40.7

100.0

14.4

47.9

37.7

100.0

12.7

42.2

45.1

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.
The proportion of farm entrepreneurial persons primarily employed in nonagricultural occupations differed between the farm operator and the farm-incomeonly subgroups. Only 3 of every 10 persons in the

farm operator population held nonfarm jobs compared

with 19 of every 20 persons in the fann-income-only

population (USDC, 1986-90). Although fewer persons

in the fmm operator population than in the fann income-only population held nonfarm jobs as their primary occupation, the need for off-farm employment

was probably greater for the farm operator population.

As the main source of income for the farm operator

population, farm income is so erratic that off-farm jobs

are often necessary to supplement farm income. People in the farm-income-only population do not usually

depend on farm income as their main source ofincome.

Unemployment

Only 2,6 percent of the farm entrepreneurial labor

force was unemployed (table 5) compared with nearly

6 percent of the total U.S. labor force. Men and

women in the farm entrepreneurial labor force had

similar unemployment rates. At the national level,

men were somewhat more likely than women to be

unemployed (5.9 percent versus 5,1 percent).

Unemployment was higher in the farm-income-only

population than in the farm operator population, a difference due in part to the occupational selection criterion of the farm operator population. Both men and

women in the farm-income-only population had

higher jobless rates than their operator population

counterparts.

Household and Family Structure

The rate of unemployment was relatively low among

farm people compared with the total U.S. population.

There were about 1,9 million farm households in the

United States in 1990, accounting for nearly 2 percent

Table 5—Labor force participation of the farm entrepreneurial population aged 16 years and over, 1990^

Labor force status Total Farm

operator

Farm

income

only

Total Farm

operator

Farm

income

only

Total

in labor force

Employed

Agriculture

Nonagriculture

Unemployed

Not In labor force

Men

In labor force

Employed

Agriculture

Nonagriculture

Unemployed

Not in labor force

Women

In labor force

Employed

Agriculture

Nonagriculture

Unemployed

Not in labor force

—Thousands-— —Percent-—

4,367 2,590 1,779 100.0 100.0 100.0

3,397 2,045 1,353 77.8 79.0 76.1

3,310 2,008 1,303 97.4 98.2 96.3

1,438 1,390 48 42.3 68.0 3.5

1,872 618 1.255 55.1 30.2 92.8

87 37 50 2.6 1.8 3.7

971 545 426 22.2 21.0 23.9

2,301 1,387 915 100.0 100.0 100.0

2,022 1,264 758 87.9 91.1 82.8

1.972 1,244 728 97.5 98.4 96.0

1,146 1,109 37 56.7 87.7 4.9

826 135 691 40.9 10.7 91.2

50 20 30 2.5 1.6 4.0

278 121 157 12.1 8.7 17.2

2,067 1,203 864 100.0 100.0 100.0

1,375 780 595 66.5 64.8 68.9

1,338 763 575 97.3 97.8 96.6

292 281 11 21.2 36.0 1.8

1,046 482 564 76.1 61.8 94.8

36 17 20 2.6 2.2 3.4

693 424 269 33.5 35.2 31.1

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90.

developed by the U.S. Dept Agr, Econ. Res. Serv.

Unpublished tabulations
of all U.S. households. Farai households generally fit

traditional family patterns. However, tiiey had fewer

young cMldren at home because of a lower proportion

of adults under age 35,

Farm Entrepreneurial Households

An average of 3.1 persons lived in each farm entrepreneurial household in 1990 (table 7). Although

small by historical standards for farm households, the

size of farm households remained somewhat larger

than the national average of 2.6 persons (USDC, Dec.

1990). Farm entrepreneurial households were more

likely than households in general to be classified as

family households (84 percent versus 71 percent), reflecting the relative absence of one-person households among fann people who are stul economically

active.

Table 6—Employment In nonagrlcultural industries of the farm entrepreneurial population aged 16 years

and over, 1990^

Nonagriculturai industry Total Farm

operator

Farm

income

only

Total Farm

operator

Farm

income

only

—Thousands— -—Perœnt-—

Total 1,872 618 1.255 100.0 100.0 100.0

Forestry and fisheries 4 2 2 .2 .3 .2

Mining and construction 149 29 120 8.0 4.7 9.6

Manufacturing 267 74 193 14.3 12.0 15.4

Transportation, communications,

and otiier public utilities 148 36 113 7.9 5.8 9.0

Trade 390 133 258 20.8 21.5 20.6

Finance, insurance, and real estate 136 44 92 7.3 7.1 7.3

Professional and related services 543 214 329 29.0 34.6 26.2

All other services 150 55 95 8.0 8.9 7.6

Public administration 86 32 53 4.6 5.2 4.2

Men 826 134 691 100.0 100.0 100.0

Forestry and fisheries 2 2 0 .2 1.5 0

Mining and construction 135 25 110 16.3 18.7 15.9

Manufacturing 159 25 134 19.2 18.7 19.4

Transportation, communications,

and other public utilities 100 23 79 12.1 17.2 11.4

Trade 184 35 149 22.3 26.1 21.6

Finance, insurance, and real estate 42 2 40 5.1 1.5 5.8

Professional and related services 112 5 107 13.6 3.7 15.5

All other services 43 7 36 5.2 5.2 5.2

Public administration 49 10 39 5.9 7.4 5.6

Women 1,047 483 564 100.0 100.0 100.0

Forestry and fisheries 2 0 2 .2 0 .4

Mining and construction 14 4 11 1.3 .8 2.0

Manufacturing 108 48 59 10.3 9.9 10.5

Transportation, communications.

and other public utilities 48 13 35 4.6 2.7 6.2

Trade 207 98 109 19.8 20.3 19.3

Finance, insurance, and real estate 94 41 53 9.0 8.5 9.4

Professional and related services 430 209 221 41.1 43.3 39.2

All other services 107 48 59 10.2 9.9 10.5

Public administration 37 22 15 3.5 4.6 2.7

^Totals may not add due to rounding

Source: U.S. Department of Commerce, Bureau of the Census,

developed by the U.S. Dept. Agr.. Econ. Res. Serv.

Current Population Survey, March 1986-90. Unpublished tabulations
Figure 3

Nonagricultural occupations of the farm entrepreneurial labor force living on fanns, 1990

Farm entrepreneurial

Farm operator

Farm-income-only

Managerial Technical Services Precision production Machine operations

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations developed by the U.S. DepX. Agr., Econ. Res. Serv.

Table 7—Characteristics of farm entrepreneurial households, 1990^

Characteristic Total Farm

operator

Farnn

income

only

Total Farm

operator

Farm

income

only

Total households

Family households

Noniamily households

Number of persons in

household:

One

Two

Three

Four

Five or more

Average number of persons

per household

—Thousands— -—Percent-—

1,861 1,109 752 100.0 100.0 100.0

1,563 945 618 84.0 85.2 82.2

298 164 134 16.0 14.8 17.8

152 72 80 8.2 6.5 10.6

673 432 240 36.2 39.0 31.9

377 218 158 20.3 19.7 21.0

389 222 167 20.9 20.0 22.2

271 164 106 14.5 14.8 14.1

Number

3.07 3.08 3.05

— = Not applicable.

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.
Farm Entrepreneurial Families

Farm entrepreneurial families accounted for 2.5 percent of the approximately 66.1 million U.S. families

in 1990 (USDC, 1986-90). The average size of farm

entrepreneurial families (3,4 persons) did not differ

significantly from that of all famihes (3.2 persons)

(table 8) (USDC, Dec. 1990).

The married-couple family remains the dominant

household type in the United States, despite

substantial increases in other family types during the

1980's. The structure of farm families seems to be

more stable and traditional than for U.S. families

overall. Married-couple families accounted for 94

percent offarm entrepreneurial families in 1990

(table 8) but for 79 percent of U.S. families overall

(USDCSept. 1990). Females headed only 2.8

percent offarm families but 16.5 percent of all U.S.

families.

Despite the predominance of married-couple families,

a majority of farm families had no children present.

This is consistent with the older age structure of farm

people and their lower birth rate. Slightly more than

half of both farm entrepreneurial and U.S. families

had no children of their own under 18 years of age hving at home (table 8) (USDC, Dec. 1990). Of the

farm families with children at home, nearly 60 percent had only school-age children (age 6-17 years).

Roughly 18 percent of the families had only preschool-age children (under 6 years), and 23 percent

had both preschool and older children. There were no

significant differences in the proportion of children in

Úie two age groups, school-age and younger, between

farm and all U.S. families with children.

Table &—Characteristics of farm entrepreneurial families, 1990^

Characteristic Total Farm

operator

Farm

income

only

Total Farm

operator

Farm

income

only

—Thousands-— —Perœnt-—

Total families 1,671 1,014 657 100.0 100.0 100.0

Married-couple family 1,563 945 618 93.5 93.2 94.1

Other, male householder 61 44 18 3.7 4.3 2.7

Other, female householder 47 26 22 2.8 2.6 3.3

Own children aged under 18 years:

None 874 540 333 52.3 53.3 50.7

One or more 797 474 324 47.7 46.7 49.3

One or more own children 797 474 324 100.0 100.0 100.0

All aged under 6 years 145 92 53 18.2 19.4 16.4

Some aged under 6 years,

some aged 6-17 years 179 108 71 22.5 22.8 21.9

All aged 6-17 years 473 274 200 59.3 57.8 61.7

Number of persons in family:

Two 656 418 237 39.3 41.2 36.1

Three 371 221 150 22.2 21.8 22.8

Four 378 212 166 22.6 20.9 25.3

Five or more 267 162 105

Numbei

16.0 16.0 16.0

Average number of persons

In family 3.41 3.37 3.49 — —

— = Not applicable.

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv,

10
Income

Income of farm entrepreneurial families kept pace

with the rest of the Nation. Farm families and households differed from those in the general population in

both the amount and source ofincome received. Income data are for calendar year 1989 and are shown

separately for households and families.

Household Income

Household income includes the income of all related

persons plus the income of any unrelated persor^ in the

household. In the CPS, income data show gross money

income received before payments of Federal, State, lo=

cal, or Social Security (FICA-Federal Insurance Contributions Act) taxes and before deductions, such as

union dues or Medicare premiums.

The median income for farm entrepreneurial households was $33,338 in 1989 (table 9). This median

was significantly higher than that of $28,910 for all

U.S. households (USDC, Sept. 1990).

However, median income was not evenly divided

between fann operator and farm-income-only

households. The 1989 median income of farm

operator households ($28,419) was far lower than

that of farm-income-only households ($42,098).

TTius, the households with at least one person

working solely or primarily as a farm operator or

manager in 1990 did not fare nearly as well as

those households having farm income but no

primary occupational commitment to the business.

This was true despite the fact that 1989 was by far

the best year for farm income since 1979 (USDA,

1990).

Family Income

There was no significant difference in the median

income of farm entrepreneurial families and all

U.S. families. The median income of farm entrepreneurial families was $34,138 in 1989, which

was less than half of 1 percent below the median of

$34,210 for famiües nationwide (table 10) (USDC,

Sept, 1990).

Table 9—Income of farm entrepreneurial households, 1989^

Household income Total Farm Farm

Income Total Farm Farm

income operator only operator only

—Thousands— —Percent—

Total households 1,861 1,109 752 100.0 100.0 100.0

Household income (dollars):

Under 5,000 85 73 12 4.6 6.6 1.6

5,000-9,999 82 60 21 4.4 5.4 2.8

10,000-14,999 136 108 28 7.3 9.7 3.7

15,000-19,999 167 123 44 9.0 11.1 5.9

20,000-24,999 168 105 63 9.0 9.5 8.4

25,000-29,999 188 125 63 10.1 11.3 8.4

30,000-34,999 170 108 62 9.1 9.7 8.2

35,000-39.999 144 91 53 7.7 8.2 7.0

40,000-44,999 131 59 72 7.0 5.3 9.6

45,000-49,999 113 41 71 6.1 3.7 9.4

50,000-59,999 154 76 78 8.3 •6.9 10.4

60,000-74,999 138 58 79 7.4 5.2 10.5

75,000-99,999 110 40 70 5.9 3.6 9.3

100,000 and over 76 41 35

Dollars

4.1 3.7 4.7

Median household income 33,338 28,419 42,098 — — —

— =^ Not applicable.

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census,

developed by the U.S. Dept. Agr., Econ. Res. Serv.

Current Population Survey, March 1986-90. Unpublished tabulations

11
Nor were there significant differences in the income

distribution between fann families and families nationwide (fig. 4). Approximately 40 percent of both

farm entrepreneurial families and families nationwide

reported income of $40,000 or more.

However, within the farm population, the income of

farm operator families lagged behind that of farm4ncome-only families. The median income for farm-income-only families was significantly higher than that

for either farm operator families or for all families nationwide. Farm operator families werc more likely

than farm-income-only families to be in the lower income categories (ñg. 5). Only 29 percent of farm operator families reported income of $40,000 or more

compared with 57 percent of fann-income-only

families.

ITie overall financial conditions of farm families has

improved considerably since the mid-1980's. In

1989, 16.9 percent of all farm entrepreneurial families who received farm self-employment income reported a net loss from farming. This is not significantiy higher, in a statistical sense, than the

percentage that reported a net loss in 1988 (15.2 percent). However, it was an improvement over 1985,

when 28.2 percent had a net loss due to farming (Butler, 1989). The overall improvement in the farm sector's earnings in 1989 is reflected by the resurgence

in farm income following the 1988 drought and by increasing real estate values over the last 4 years (Morehart, Johnson, and Banker, 1990).

A loss from farming however, did not necessarily accurately reflect the overall socioeconomic well-being

of farm families because income from other sources

helped compensate for losses in agriculture. The percentage of farm families that lost money from all income sources did not change significantly between

1988 and 1989. Total income was negative for 1.9

percent of farm entrepreneurial families in 1989 compared with 1.4 percent in 1988 (USDC, 1986-90).

Table 10—Ineome and poverty among farm entrepreneurial families, 1989^

Income and poverty Total Farm

operator

Farm

income

oniy

Total Farm

operator

Farm

income

only

Total families 1,671

'Thousands1,014 857 100=0

'Percent100.0 100.0

Family income (dollars):

Under 5,000

5,000-9,999

10,000-14,999

15,000-19,999

20,000-24,999

25,000-29,999

30,000-34,999

35,000-39,999

40,000-49,999

50,000-74,999

75,000-99,999

100,000 and over

Below poverty level

Median family Income

70

67

111

143

149

173

148

141

227

268

99

75

152

34,138

60

53

95

104

100

122

99

86

92

126

37

41

125

28.893

10

14

17

39

48

51

49

54

135

143

63

34

27

Dollars

43,444

4.2

4.0

6.6

8.6

8.9

10.4

8.9

8,4

13.6

16.0

5.9

4.5

9.1

5.9

5.2

9.4

10.3

9.9

12.0

9.8

8.5

9.1

12.4

3.6

4.0

12.3

1.5

2.1

2.6

5.9

7.3

7.8

7.5

8.2

20.5

21.8

9.6

5.2

4.1

— = Not applicable.

^Totals may not add due to rounding.

Source: U.S. Department of Commerœ, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Âgr.. Econ. Res. Serv.

12
Poverty

Poverty thresholds are based solely on money income

and vary by family size. TTie poverty threshold for a

family of four was $12,675 for income received in

1989 (USDC, Sept. 1990). The poverty rate of 9 percent for farm entrepreneurial families was not significantly lower than the 10-percent rate for families

nationwide in 1989 (table 10) (USDC, Sept. 1990).

Poverty rates for farm entrepreneurial families have

declined steadily for the past 5 years, while rates for

families in the general population have not significantiy changed (fig. 6). The decrease in the number

of farm families that sustained a net loss from farming may partially explain the decline in poverty rates.

farm-income-only families reported a net loss from

farming (compared with only 11 percent of farm operator families), then the former group would have

the higher poverty rate. But, farm-income-only families tended to rely more heavily on wage and salary

öian farm self-employment income as their main

source of earnings. Eighty percent of the total earnings for fann-income-only families came from wage

and salary compared with only 50 percent of earnings

for farm operator families. In contrast, only 10 percent of the total earnings of farm-income-only families came from farm self-employment income versus

47 percent of the total earnings for farm operator

families (USDC, 1986-90).

Sources of Income

Poverty is more prevalent among farm operator families than among farm-income-only families. Although the poverty rate for farm operator families has

significantly declined over the past 5 years, their rate

was still about three times higher than that for farmincome-only families in 1989 (12.3 versus 4.1 percent). One might think that if 25 percent of

Farm entrepreneurial families received income from

various sources, but, as expected, most (90 percent)

reported farm self-employment income (or loss) in

1989 (table 11). About 16 percent of farm operator

families reported no farm self-employment income, a

situation likely to occur in families with farm managers or new operators. About 37 percent of the total inFigure4

Income distribution of U.S. families and farm

entrepreneurial families, 1989

Percentage of families

20-

16"

12"

Farm entrepreneurial families

-h 4- 4- -h +

Under 10.0-14.9 15.0-19.9 20.0-24.9 25.0-29.9 30.0-34.9 35.0-39.9 40.0-49.9 50.0-74.9 75.0 and

10.0 over

1,000 dollars

Source: U.S. Department o# Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations developed by the U.S. Dept. Agr., Econ. Res. Sen/.

13
Figure 5

Income distribution of farm operator and farm-income-only

families, 1989

Percentage of families

25-

20--

15-

10--

5-

Farm-income-only families /

\/

/

\

\

\

Farm operator families

4- -H + + -h

Under 10.0-14.9 15.0-19.9 20.0-24.9 25.0-29.9 30.0-34.9 35.0-39.9 40.0-49.9 50.0-74.9 75.0 and

10.0 over

1,000 dollars

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations developed by the U.S. Dept. Agr, Econ. Res. Sen/.

Figure 6

Poverty among farm entrepreneurial families compared with all families, 1989

Percent

25->>

20-

,^

^^\Farm operator families

15-

us families "^ ""^ - " *" — -, ,.,.

10-

^^^-^~--__

Farm entrepreneurial families

5-

0-

Farm-income-only families "^^—•

— \ \— H—

1985 86 87 88 89

Source: U.S. Department of Commerce, Bureau of the Certsus. Cun-ent Population Survey, March 1986-90. Unpublished tabutsâbns developed by the U.S. Dept. Agr., Econ. Res. Serv,

14
come of farm operator families came from farming

compared with 8 percent for farm-income-only families (fig. 7). While the percentage of income from

farming for farm-income-only families did not

change, farm operator families were less dependent

on off-farm sources of income in 1989 than in 1986.

In 1986, only 28 percent offarm operator family income came from farming (Butler, 1989).

Wage and salary income was the most frequently reported source of earnings, after farm self-employment

income, for farm entrepreneurial families (table 11).

Wage and salary income was the main source of income for families nationwide. Seventy-seven percent

of f^m families and 82 percent of families nationwide received wage and salary income in 1989

(USDC, 1986-90). Nearly 68 percent of the total income of farm-income-only families came from wage

and salary versus only 40 percent of that for farm operator families (ñg. 7).

Interest, the most frequently reported source of property income, is widely received by farm entrepreneurial families. Farm families were more

likely than families nationwide to have savings or investments that earned interest, with about four-fifths

of farm families and more than two-thirds of U.S.

families reporting interest income in 1989 (table 11)

(USDC, 1986-90), Somewhat less than one-fourth of

farm families received oüier property income, such as

dividends and rents. This, too, is a larger proportion

than found among U.S. families as a whole.

Income from interest differed between the two subgroups in the farm population. Farm operator families were less likely than farm-income-only families

Table 11—Sources of income of farm entrepreneurial families, 1989

Source of income Total Farm

operator

Farm

income

only

Total families

Families receiving:

Wage and salary income

Self-employment income—

Nonfarm

Farm

1,671

77.6

18.9

90.2

Thousands

1,014

Percent

68.7

15.6

84.2

657

91.3

24.1

100.0

Property income

Interest

Dividends

Rent

79.7

23.6

20.9

77.0

19.1

19.9

83.9

30.6

22.6

Transfer payments—

Social security and railroad retirement income 20.6

Supplemental security income^ 2.1

Public assistance and welfare^ .4

Unemploynnent compensation, veterans' 8.5

payments, and workers' compensation

Retirement^ 9.5

Alimony and child support"^ 7.1

25.1

1.7

.5

6.0

8.7

4.5

13.7

2.5

.3

12.3

11.1

10.9

^Includes payments made by Federal, State, and local welfare agencies to low-income persons who are aged 65 years and over, blind,

or disabled.

^Includes payments from Aid to Families with Dependent Children and general assistance.

^Includes private pensions and annuities, military retirement, and Federal, State, or local government pensions.

"^Includes other regular contributions from persons not in the household.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.

15
to get interest, dividends, or rent, although this property income accounted for a larger proportion of the

total income of faim operator families than for farmincome-only families (11 percent versus 8.8 percent)

(USDC, 1986-90),

Some farm families received income from public as=

sistance, unemployment compensation, and retirement programs, but they were the exceptions. Our

classification of the farm population as those in households where a member had a farm-related job or farm

self-employment income reduces the Ukelihood that

fann entrepreneurial families would receive these

kinds of payments, which go to people who are not

working.

Welfare benefits ranked at üie bottom of the list of income sources for fami entrepreneurial families.

Fewer than 1 percent of farm families received public

assistance compared with more than 5 percent of families nationwide (USDC, 1986-90), The employmentand income-based selection of the farm group certainly plays a role in this difference, as mentioned

above. Additionally, farm families tend to have more

assets than families nationwide and the farm population has far fewer female-headed families with minor

children. As a result, a smaller proportion offarm

families qualify for assistance.

People in farm entrepreneurial families may have received other types of benefits less often than families

in the general population because they chose not to

participate. Wage and salary workers and/or their employers are required to enroll in unemployment compensation and retirement benefit programs. But the

self-employed have an option not to enroll The

higher proportion of self-employed persons in farm

entrepreneurial families explains part of the difference in the rate at which farm families receive these

benefits compared with the rate for families nationFigure 7

Total family income from various sources, 1989

Income sources

^ Ali other sources

- Social Security and

railroad retirement

- Interest and dividends

— Farm self-employment

- Nonfarm

self-employment

Wages and salaries

Farm operator families Farm-income-oniy families

Source: U.S. Department of Commerce, Bureau of the Census. Current Poputation Survey. March 1986-90. Unpublished tabulations developed by the U.S. Dep*. Agr.. Econ. Res. Serv.

Total farm

entrepreneurial families

16
wide. Nearly 9 percent of farm entrepreneurial families and 12 percent of all families received unemployment compensation, veterans' payments, and

workers' compensation in 1989 (USDC, 1986-90).

Farm families were also less likely to collect retirement income (9.5 percent versus 15 percent). Within

the farm entrepreneurial population, farm operator

families were more likely than farm-income-only

families to receive Social Security payments, an indication of their older average age.

Conclusions

People wiüi ties to farming are a diverse group. Although farming can still be considered a way of life

for some people, die use of farm occupation and farm

self-employment income as criteria for identifying

farm people emphasizes farming as a business. Many

people who make their living by farming today must

have appropriate skills for the farm business as well

as the necessary skills to compete for off-farm jobs.

The education gap that historically existed between

the farm and nonfarm population has disappeared.

Within the farm entrepreneurial population, women

were more likely than men to be high school graduates and to attend college. With the unemployment

rate for farm people well below the national average,

the farm entrepreneurial population seems to be competing successfully for jobs available in their area.

Lower deb^asset ratios and increasing net farm business incomes are indicators that farmers are recovering from the financial stress of Üie early and

mid-1980's. Farm entrepreneurial families kept pace

with families nationwide in income in 1989. Although the percentage of farm families in poverty did

not differ from tiiat of families nationwide, farm entrepreneurial families were less likely to receive welfare benefits. These farm families typically depended

on both farm self-employment and wage and salary

earnings as their main sources of income.

References

Banks, Vera J., Margaret A. Butier, and Judith Z. Kalbacher. Alternative Definitions ofFarm People,

ERS Staff Report No. AGES 89-9. U.S. Dept. Agr.,

Econ. Res. Serv., Mar. 1989.

Butier, Margaret A. The Farm Entrepreneurial Population, 1987, RDRR-72. U.S. Dept. Agr., Econ. Res.

Serv., June 1989.

Morehart, Mitchell J., James D. Johnson, and David

E. Banker. Farm Businesses End the Decade With

Strong Financial Performance. AIB-616, U.S. Dept

Agr., Econ. Res. Serv., Oct. 1990.

Oliveira, Victor J., and Jane E. Cox. The Agricultural Work Force of 1987. AER-609. U.S. Dept

Agr., Econ. Res. Serv,, May 1989.

U.S. Department of Agriculture (USDA), National

Agricultural Statistics Service. Agricultural Statistics, 1990. 1990.

U.S. Department of Commerce (USDC), Bureau of

the Census. Current Population Survey, March 1986-

90. Unpublished tabulations developed by the U.S.

Dept. Agr., Econ. Res. Serv.

, Bureau of the Census. "Household and

Family Characteristics: March 1990 and 1989," Current Population Reports, Series P-20, No. 447, Dec.

1990.

, Bureau of the Census. "Money Income

and Poverty Status in the United States, 1989," Current Population Reports, Series P-60, No. 168, Sept.

1990.

, Bureau of the Census, and U.S. Department of Agriculture, Economic Research Service.

"Residents of Farms and Rural Areas: 1990," Current

Population Reports, Series P-20, No. 457, May 1992.

Appendix I: Definitions

and Expianations

Population coverage. Estimates in this report are

based on data tabulated from the March 1986 through

1990 Current Population Survey (CPS) oftiie Bureau

of the Census. They relate to the civilian noninstitutional population of the United States and members of

the armed forces living off post or with their families

on post.

Race. The population is divided into three groups on

the basis of race: white, black, and "other races,"

17
The last category includes Indians, Japanese, Chinese,

and any other race except white and black. Data for

"other races" are not shown in this report.

Hispanic origin. People of Hispanic origin are those

who indicate that their origin is Mexican, Puerto Rican, Cuban, Central or South American, or some

other Hispanic origin. People of Hispanic origin may

te of any race.

Age. The age classification is based on the age of the

person at last birthday.

Median. The median is the value which divides a distribution into two equal parts, one-half of the cases

falling below this value and one-half of the cases exceeding this value.

L^bor force. People are classified as in the labor

force if they were employed or unemployed during

the survey week.

Employed, Employed people include all civilians

aged 16 and over who, during the specified week,

(1) did any work as paid employees, in their own business or profession, or on their own farm, or who

worked 15 hours or more as unpaid workers on a

farm or in a business operated by a member of the

family, or (2) were not working but who had jobs or

businesses from which they were temporarily absent because of illness, bad weather, vacation, or lalx)r-management dispute, or tecause they were taking off for

personal reasons, whether or not they were paid by

their employers for time off, and whether or not they

were seeking other jobs.

Unemployed. Unemployed people are those civilians aged 16 and over who, during the survey week,

had no employment but were available for work and

(1) had engaged in any specific job-seeking activity

within the past 4 weeks, (2) were waiting to be called

back to a job from which they had been laid off, or

(3) were waiting to report to a new wage or salary job

within 30 days.

Not in the labor force. All civilians aged 16 and

over who are not classified as employed or unemployed are defined as "not in tiie labor force." This

group includes people engaged only in own-home

housework, attending school, or unable to work because of long-term physical or mental illness, people

who are retired, seasonal workers for whom the survey week fell in an off-season, and the voluntarily

idle.

Industry and occupation. Data on industry and occupation refer to the job held during the survey week.

People with more than one job during the survey

week were classified as employed in the industry or

occupation in which they worked the greatest number

of hours during the week. The industry and occupation groups are based on the classification system

used in the 1980 Census of Population.

Family. A family is a group of two or more people

(one of whom is the householder) related by birth,

marriage, or adoption and who reside together; all

such people are considered as members of one

family.

Family household. A family household is a household maintained by a family (as defined above). A

married-couple family household consists of a husband and wife, with or without children. Other family households consist of a male or female

householder with dependents but no spouse present.

Nonfamily household. A nonfamily household consists of a householder who lives alone or with one or

more nonrelatives. It may also contain subgroups of

people related to each other but not to the householder.

Own children. Own children in a family are sons

and daughters, including stepchildren and adopted children of the householder, ITie count of own children

under 18 years old is limited to single (never married)

children.

Family income. The total income of a family is the

sum ofthe amounts received by all income recipients

in the family.

Rounding. The individual figures in this report are

rounded to the nearest thousand and have not been adjusted to group totals, which are independentiy

rounded. Percentages are rounded to the nearest tenth

of a percent; therefore, the percentages in a distribution do not always add to exactiy 100.0 percent. The

totals, however, are always shown as 100.0,

18
Appendix II: Source and

Reliability of Estimates

Estimates in this report are based on data obtained

from the March 1986-90 CPS conducted by the Bureau of the Census. TTie monthly CPS deals mainly

with labor force data for the civilian, noninstitutional

population of the United States. Questions relating to

labor force participation are asked about each member 15 years old and over in every sample household.

Data on labor force participation in this report refer to

persons 16 years old and over. Supplementary questions are also asked every March about household and

family characteristics, and about money income and

work experience for the previous year. For a more de=

tailed description of the CPS, its sample size, and the

estimating procedure, see (USDC, Dec. 1990, and

USDC, Sept. 1990).

Since the CPS estimates in this report are based on a

sample, they may differ somewhat from the figures

obtained if a complete census had been taken using

the same schedules, instructions, and enumerators.

There are two types of errors possible in an estimate

based on a sample: sampling and nonsampling.

Standard eirors that primarily indicate the magnitude

of the sampling errors for data presented in this

report are published in (USDC and USDA, 1992).

Standard errors also partially measure the effect of

some nonsampling errors in response and enumeration, but do not measure any systematic biases in the

data. The full extent of nonsampling error is unknown. Particular care should thus be exercised in

the interpretation of figures based on a relatively

small number of cases or on small differences between estimates.

All major statements of comparison made in the text of

this report are statistically significant at the 90-p^rcent confidence level. TTiis means that the chances are

at least 9 in 10 that a difference identified in the text

indicates a difference in the populations that is greater

Üian chance variation arising from the use ofsamples.

Appendix III: Characteristics of Farm

Operators and Farm Income

Recipients Only

Nearly 1.3 million individuals were primarily employed as farm operators or farm managers (app. table

1) in 1990. Around 852,000 individuals were farm

self-employment income recipients, but were primarily

employed in nonagricultural occupations. Farm income recipients were less likely than farm operators to

reside on farms. Fmm operators were sHghtly older than

farm income recipients, although the difference was

not large enough to be considered statistically significant. Farm operators were just as likely as farm income recipients to be high school graduates, although

less than a third of farm operators continued their education beyond high school. Unemployment was practically nonexistent for farm operators and only 3.5 percent

for farm income recipients. The unemployment rate for

farm income recipients was low, considering the fact

that nearly 94 percent worked outside agriculture.

19
Appendix table 1—Selected characteristics of individual farm operators and farm self-employment

income recipients, 1990^

Characteristic Farm

operators

Farm income

recipients

only

Farm

operators

Farm Income

recipients

oniy

Thousands PercentTotal 1,267 852 100.0 100.0

Male 1,090 668 86.0 78.4

Female 177 184 14.0 21.6

Residence:

Farm 841 302 66.4 35.4

Nonfarm 426 550 33.6 64.6

Race and Hispanic origin:

White 1.248 819 98.5 96.1

Black 14 20 1.1 2.3

Hispanic origin^ 22 17 1.7 2.0

Age (years):

Undena 13 6 1.0 .7

18-64 1,034 769 81.6 90.3

18-24 51 26 4.0 3.1

25-34 255 142 20.1 16.7

35-44 229 209 18.1 24.5

45-54 252 197 19.9 23.1

55-64 247 195 19.5 22.9

65 and over 221 77 17.4 9.0

Education:

Persons aged 25 years and over 1,203 820 100.0 100.0

Not high school graduate 263 106 21.9 12.9

High school graduate 570 338 47.4 41.2

Some college or more 370 377 30.8 46.0

Employment status:

Persons in the labor force,

aged 16 years and over 1,230 738 100.0 100.0

Employed 1.217 712 98.9 96.5

Agriculture 1,210 21 98.4 2.8

Nonagriculture 7 691 .6 93.6

Unemployed 13 26 1.1 3.5

Years

Median age 48.4 47.2 — —

— s Not applicable.

^Totats may not add due to rounding.

^Persons of Hispanic origin may be any race.

Source: U.S. Department of Commerce, Bureau of the Census,

developed by the U.S. Dept. Agr., Econ. Res. Serv.

Current Population Survey. March 1986-90. Unpublished tabulations

20
Appendix IV: Tables for 1988 and 1989

Appendix table 2—Selected characteristics of individual farm operators and farm self-employment

income recipients, 1988-89^

Farm

operators

Farm income Farm

operators

Farm income

Characteristic recipients

only

recipients

only

-Thousands --Perœnt1988:

Total 1.247 852 100.0 100.0

Male 1,075 669 86.2 78.5

Female 172 183 13.8 21.5

Residence—

Farm 867 323 69.5 37.9

Nonfarm 380 529 30.5 62.1

Race and Hispanic origin—

White 1,220 825 97.8 96.8

Black 16 19 1.3 2.2

Hispanic origin^ 14 15 1.1 1.8

Age (years)—

Under 18 8 13 .6 1.5

18-64 1,029 754 82.5 88.5

18-24 45 37 3.6 4.3

25-34 246 159 19.7 18.7

35-44 238 184 19.1 21.6

45-54 231 225 18.5 26.4

55-64 269 149 21.6 17.5

65 and over 211 85 16.9 10.0

Education—

Persons aged 25 years and over 1,195 802 100.0 100.0

Not high school graduate 285 135 23.8 16.8

High school graduate 578 363 48.4 45.3

Some college or more 332 304 27.8 37.9

Employment status—

Persons in the labor force,

aged 16 years and over 1,223 721 100.0 100.0

Employed 1,216 699 99.4 96.9

Agriculture 1,214 23 99.3 3.2

Nonagriculture 3 677 .2 93.9

Unemployed 7 22 .6 3.1

Years

Median age 48.7 46.5 — —

See footnotes at end of table. Continued—

21
Appendix table 2—Selected characteristics of individual farm operators and farm self-employment

income recipients, 1988-89^—Continued

Farm

operators

Farm income Farm

operators

Farm income

Characteristic recipients

only

recipients

oniy

.-..-.-..-.-..-Thousands- -Percent-—

1989:

Total 1.223 853 100.0 100.0

Male 1.063 662 86.9 77.6

Female 160 191 13.1 22.4

Residence—

Farm 814 315 66.6 36.9

Nonfarm 409 538 33.4 63.1

Race and Hispanic originWhite 1,205 832 98.5 97.5

Black 10 15 .8 1.8

Hispanic origin^ 9 25 .7 2.9

Age (years)—

Under 18 9 7 .7 .8

18-64 991 772 81.0 90.5

18-24 46 47 3.8 5.5

25-34 217 166 17.7 19.5

35-44 240 210 19.6 24.6

45-54 216 211 17.7 24.7

55-64 272 138 22.2 16.2

65 and over 223 74 18.2 8.7

Education—

Persons aged 25 years and over 1.168 799 100.0 100.0

Not high school graduate 285 132 24.4 16.5

High school graduate 560 308 47.9 38.5

Some college or more 324 359 27.7 44.9

Employment status—

Persons in the labor force,

aged 16 years and over 1,183 771 100.0 100.0

Employed 1.177 739 99.5 95.9

Agriculture 1.173 26 99.2 3.4

Nonagriculture 4 713 .3 92.5

Unemployed 6 31 .5 4.0

Years

Median age 49.6 44.7 — —

— = Not applicable.

^Totals may not add due to rounding.

^Persons of Hispanic origin may be any race.

Source: U.S. Department of Commerce. Bureau of the Census, Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.

22
Appendix table 3—Regional distribution of the farm entrepreneurial population, 1988-89^

Region Total Farm

operator

Farm

income

only

Total Farm

operator

Farm

income

only

1988:

Total

Northeast

Midwest

South

West

1989:

Total

Northeast

Midwest

South

West

—Thousands—

5,715 3,379 2,336

408 242 166

2,752 1,729 1,023

1,675 833 843

880 576 304

5,702 3,353 2,348

403 226 177

2,662 1,653 1,010

1,628 850 778

1,008 624 384

100.0 100.0 100.0

7.1 7.2 7.1

48.2 51.2 43.8

29.3 24.7 36.1

15.4 17.0 13.0

100.0 100.0 100.0

7.1 6.7 7.5

46.7 49.3 43.0

28.6 25.4 33.1

17.7 18.6 16.4

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.

23
Appendix tabla 4—Characteristics of the farm entrepreneurial population^ 1988-89^

Characteristic Total Farm

operator

Farm

income

only

Total Farm

operator

Farm

income

only

1988:

Total

Male

Female

Race and Hispanic originWhite

Black

Hispanic origin^

Age (years)—

Under 18

18-64

18-24

25-34

35-44

45-54

55-64

65 and over

Median age

1989:

Total

Male

Female

Race and Hispanic origin—

White

Black

Hispanic origin^

Âge (years)—

Under 18

16-64

18-24

25-34

35-44

45-54

55-64

65 and over

Median age

—Thousands—

5,715 3,379 2,336

3,059 1,840 1,219

2,656 1,539 1,117

5,542 3,293 2,248

125 58 67

119 64 56

1,461 843 618

3.749 2,188 1,560

608 365 243

833 512 321

762 428 333

824 430 394

722 453 269

506 349 157

34.5 34.4

—Thousands-—

34.6

5,702 3,353 2.349

3.003 1,820 1.183

2.698 1,533 1.166

5,579 3,296 2,282

80 30 49

109 55 54

1,543 887 656

3,647 2,084 1,561

580 295 285

767 449 318

828 450 377

800 421 378

672 469 203

512 380 132

Years

100.0

—TGI UC?f/Í

100.0 100.0

53.5 54.5 52.2

46.5 45.5 47.8

97.0 97.5 96.2

2.2 1.7 2.9

2.1 1.9 2.4

25.6 24.9 26.5

65.6 64.8 66.8

10.6 10.8 10.4

14.6 15.2 13.7

13.3 12.7 14.3

14.4 12.7 16.9

12.6 13.4 11.5

8.9 10.3 6.7

100.0 100.0 100.0

52.7 54.3 50.4

47.3 45.7 49.6

97.8 98.3 97.1

1.4 .9 2.1

1.9 1.6 2.3

27.1 26.5 27.9

64.0 62.2 66.5

10.2 8.8 12.1

13.5 13.4 13.5

14.5 13.4 16.0

14.0 12.6 16.1

11.8 14.0 8.6

9.0 11.3 5.6

Years

34.5 36.7 32.3

— = Not applicable.

^Totals may not add due to rounding.

^Persons of Hispanic origin may be any race.

Source: U.S. Department of Gommerœ, Bureau of the Census. Current Population Survey, March 1986=90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.

24
Appendix tabla 5—Education of the farm entrepreneurial population aged 25 years and over, 1988-89^

Education leve! Total Farm

operator

Farm

income

only

Total Farm

operator

Farm

income

only

—Thousands—- Percent-—_>=_.=___.

1988:

Total 3,646 2.171 1,475 100.0 100.0 100.0

Not high school graduate 706 434 272 19.4 20.0 18.4

High school graduate 1,740 1,071 669 47.7 49.3 45.4

Some college or more 1,200 666 534 32.9 30.7 36.2

Males 1,929 1,173 755 100.0 100.0 100.0

Not high school graduate 441 284 157 22.9 24.2 20.8

High school graduate 871 545 326 45.2 46.5 43.2

Some college or more 616 344 273 31.9 29.3 36.2

Females 1,718 998 720 100.0 100.0 100.0

Not high school graduate 265 150 115 15.4 15.0 16.0

High school graduate 869 526 343 50.6 52.7 47.6

Some college or more 584 322 262 34.0 32.3 36.4

1989:

Total 3.579 2.170 1,408 100.0 100.0 100.0

Not high school graduate 677 443 234 18.9 20.4 16.6

High school graduate 1.648 1.068 580 46.0 49.2 41.2

Some college or more 1.253 660 594 35.0 30.4 42.2

Males 1.883 1.163 720 100.0 100.0 100.0

Not high school graduate 400 274 126 21.2 23.6 17.5

High school graduate 835 555 280 44.3 47.7 38.9

Some college or more 648 334 314 34.4 28.7 43.6

Females 1.696 1.007 688 100.0 100.0 100.0

Not high school graduate 277 169 108 16.3 16.8 15.7

High school graduate 813 513 300 47.9 50.9 43.6

Some college or more 605 325 280 35.7 32.3 40.7

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census,

developed by the U.S. Dept. Agr., Econ. Res. Serv.

Current Population Survey, March 1986-90. Unpublished tabulations

25
Appendix table 6—Labor force participation of the farm entrepreneurial population aged 16 years

and over, 1988-89^

Labor force status Total Farm

operator

Farm

income

only

Total Farm

operator

Farm

Income

only

1988:

Total

In labor force

Employed

Agriculture

Nonagrlculture

Unemployed

Not In labor force

Men

In labor force

Employed

Agriculture

Nonagrlculture

Unemployed

Not In labor force

Women

In labor force

Employed

Agriculture

Nonagriculture

Unemployed

Not In labor force

1989:

Total

In labor force

Employed

Agriculture

Nonagriculture

Unemployed

Not In labor force

Men

In labor force

Employed

Agriculture

Nonagriculture

Unemployed

Not in labor force

Women

In labor force

Employed

Agriculture

Nonagriculture

Unemployed

Not in labor force

—Thousands— —Perœnt-—

4.464 2.656 1.808 100.0 100.0 100.0

3,349 2,037 1,311 75.0 76.7 72.5

3,269 2,013 1,256 97.6 98.8 95.8

1,464 1,409 54 43.7 69.1 4.1

1,805 604 1,202 53.9 29.7 91.7

80 25 55 2.4 1.2 4.2

1,116 619 497 25.0 23.3 27.5

2,387 1,439 948 100.0 100.0 100.0

2,079 1,317 763 87.1 91.5 80.5

2,039 1,305 734 98.1 99.1 96.2

1,174 1.136 38 56.5 86.3 5.0

865 169 696 41.6 12.8 91.2

40 12 29 1,9 .9 3.8

308 123 185 12.9 8.5 19.5

2.077 1.217 861 100.0 100.0 100.0

1.269 721 549 61.1 59.2 63.8

1,230 708 522 96.9 98.2 95.1

290 273 17 22.9 37.9 3.1

940 435 505 74.1 60.3 92.0

39 13 26 3.1 1.8 4.7

808 496 312 38.9 40.8 36.2

4,343 2.575 1,768 100.0 100.0 100.0

3,378 2.001 1,377 77.8 77.7 77.9

3,281 1.963 1,318 97.1 98.1 95.7

1,397 1,336 61 41.4 66.8 4.4

1,884 626 1,257 55.8 31.3 91.3

97 38 58 2.9 1.9 4.2

966 574 392 22.2 22.3 22.2

2.278 1.370 908 100.0 100.0 100.0

2.042 1.268 774 89.6 92.6 85.2

1,981 1,250 730 97.0 98.6 94.3

1,133 1,095 38 55.5 86.4 4.9

848 155 692 41.5 12.2 89.4

61 18 43 3.0 1.4 5.6

236 102 134 10.4 7.4 14.8

2,065 1,205 860 100.0 100.0 100.0

1,335 732 603 64.6 60.7 70.1

1,300 712 588 97.4 97.3 97.5

264 241 23 19.8 32.9 3.8

1,036 471 565 77.6 64.3 93.7

35 20 15 2.6 2.7 2.5

730 473 257 35.4 39.3 29.9

Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census,

developed by the U.S. Dept. Agr., Econ. Res. Serv.

Current Population Survey, March 1986-90. Unpublished tabulations

26
Appendix table 7—Employment in nonagricultural industries of the farm entrepreneurial population aged 16

years and over, 1988-89^

Nonagricultural industry Total Farm

operator '

Farm

income

only

Total Farnn

operator

Farm

Income

only

—Thousands— Perœnt-—

1988:

Total 1,805 604 1,202 100.0 100.0 100.0

Forestry and fisheries 3 2 1 .2 .3 .1

Mining and construction 127 30 97 7.0 5.0 8.1

Manufacturing 290 72 218 16.1 11.9 18.1

Transportation, communications,

and other public utilities 129 24 105 7.1 4.0 8.7

Trade 370 151 219 20.5 25.0 18.2

Finance, insurance, and

real estate 108 36 72 6.0 6.0 6.0

Professional and related services 501 181 320 27.8 30.0 26.6

All other services 164 66 98 9.1 10.9 8.2

Public administration 114 42 72 6.3 7.0 6.0

Men 865 169 696 100.0 100.0 100.0

Forestry and fisheries 3 2 1 .3 1.2 .1

Mining and construction 113 26 87 13.1 15.4 12.5

Manufacturing 212 36 176 24.5 21.3 25.3

Transportation, communications,

and other public utilities 94 13 81 10.9 7.7 11.6

Trade 167 49 118 19.3 29.0 17.0

Finance, insurance, and

real estate 46 6 40 5.3 3.6 5.7

Professional and related services 118 15 103 13.6 8.9 14.8

All other services 60 16 44 6.9 9.5 6.3

Public administration 52 7 46 6.0 4.1 6.6

Women 940 435 505 100.0 100.0 100.0

Forestry and fisheries 0 0 0 0 0 0

Mining and construction 13 4 9 1.4 .9 1.8

Manufacturing 78 36 43 8.3 8.3 8.5

Transportation, communications.

and other public utilities 35 11 24 3.7 2.5 4.8

Trade 203 103 101 21.6 23.7 20.0

Finance, insurance, and

real estate 62 30 33 6.6 6.9 6.5

Professional and related services 383 166 217 40.7 38.2 43.0

All other services 104 50 54 11.1 11.5 10.7

Public administration 62 35 27 6.6 8.0 5.3

1989:

Total 1,884 626 1,257 100.0 100.0 100.0

Forestry and fisheries 10 1 9 .5 .2 .7

Mining and construction 186 32 154 9.9 5.1 12.3

Manufacturing 299 57 242 15.9 9.1 19.3

Transportation, communications.

and other public utilities 134 37 96 7.1 5.9 7.6

Trade 350 144 206 18.6 23.0 16.4

Finance, insurance, and

real estate 122 51 71 6.5 8.1 5.6

See footnotes at end of table. Continued—

27
Appendix table 7—Employment In nonagrícultural industries of the farm entrepreneurial population aged 16

years and over, 1988-89^—Continued

Nonagricultural industry Total Farm

operator

Farm

income

only

Total Farm

operator

Farm

income

only

—Thousands—

Professional and related services 490 197 293

All other services 184 65 119

Public administration 109 42 67

Men 848 155 692

Forestry and fisheries 9 1 8

Mining and construction 157 26 131

Manufacturing 190 26 164

Transportation, communications,

and other public utilities 86 14 72

Trade 146 50 96

Finance, insurance, and

real estate 31 7 24

Professional and related services 110 17 93

All other services 59 6 53

Public administration 61 9 52

Women 1,036 471 565

Forestry and fisheries 1 0 1

Mining and construction 29 6 23

Manufacturing 109 31 78

Transportation, communications.

and other public utilities 48 23 25

Trade 205 94 111

Finance, insurance, and

real estate 91 45 46

Professional and related services 380 180 200

All other services 125 59 66

Public administration 48 33 15

26.0

'—-rciLrCin

31.5 23.3

9.8 10.4 9.5

5.8 6.7 5.3

100.0 100.0 100.0

1.1 .6 1.2

18.5 16.8 18.9

22.4 16.8 23.7

10.1 9.0 10.4

17.2 32.3 13.9

3.7 4.5 3.5

13.0 11.0 13.4

7.0 3.9 7.7

7.2 5.8 7.5

100.0 100.0 100.0

.1 0 .2

2.8 1.3 4.1

10.5 6.6 13.8

4.6 4.9 4.4

19.8 20.0 19.6

8.8 9.6 8.1

36.7 38.2 35.4

12.1 12.5 11.7

4.6 7.0 2.7

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census.

developed by the U.S. Dept. Agr.. Econ. Res. Serv.

Current Population Survey, March 1986-90. Unpublished tabulations

28
Appendix table B—Characteristics of farm entrepreneurial households, 1988-89^

Characteristic Total Farm

operator

Farm

Income

only

Total Farm

operator

Farm

inconne

only

1988:

/ flUUÖetllUb —j-e/œ/If

Total households 1.859 1,097 763 100.0 100.0 100.0

Family households 1.569 938 636 84.4 85.5 83.4

Nonfamiiy households 290 159 127 15.6 14.5 16.6

Number of persons in

household—

One 158 82 74 8.4 7.5 9.7

Two 684 403 281 36.8 36.7 36.8

Three 355 228 127 19.1 20.8 16.6

Four 391 219 172 21.0 20.0 22.5

Five or more 273 164 109

Number

14.7 14.9 14.3

Average number of persons

per household 3.07 3.08

—Thousands-—

3.06

-—Percent-—......S

1989:

Total households 1,848 1,096 752 100.0 100.0 100.0

Family households 1.563 939 624 84.6 85.7 83.0

Nonfamiiy households 285 157 128 15.4 14.3 17.0

Number of persons in

household—

One 140 72 68 7.6 6.6 9.0

Two 654 417 237 35.4 38.0 31.5

Three 380 228 152 20.6 20.8 20.2

Four 421 232 190 22.8 21.2 25.3

Five or more 252 148 104

Number

13.6 13.5 13.8

Average number of persons

per household 3.09 3.06 3.12 — — —

— = Not applicable.

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.

29
Appendix table 9—Characteristics of farm entrepreneurial families, 1988-89^

Characteristic Total Farm

operator

Farm

income

only

Total Farm

operator

Farm

income

only

—Thousands— —Percent—

1988:

Total families 1.661 992 669 100.0 100.0 100.0

Married-couple family 1,569 933 636 94.5 94.1 95.1

Other, male householder 50 36 14 3.0 3.6 2.1

Other, female householder 42 23 19 2.5 2.3 2.8

Own children aged under 18 years—

None 931 569 362 56.1 57.4 54.1

One or more 730 423 307 43.9 42.6 45.9

One or more own children 730 423 307 100.0 100.0 100.0

All aged under 6 years 157 102 55 21.5 24.1 17.9

Some aged under 6 years.

some aged 6-17 years 154 90 65 21.1 21.3 21.2

All aged 6-17 years 419 232 187 57.4 54.8 60.9

Number of persons in famliy—

Two 670 398 271 40.3 40.1 40.5

Three 338 215 123 20.3 21.7 18.4

Four 393 221 172 23.7 22.3 25.7

Five or more 261 157 104

Number

15.7 15.8 15.5

Average number of persons

in family 3.44 3.41

-—Thousands—

3.49 I......—Percent-—

1989:

Total families 1,667 1,003 664 100.0 100.0 100.0

Married-couple family 1.563 939 624 93.8 93.6 94.0

Other, male householder 44 33 11 2.6 3.3 1.7

Other, female householder 61 31 29 3.7 3.1 4.4

Own children aged under 18 yearsNo ne 874 553 320 52.4 55.1 48.2

One or more 793 449 344 47.6 44.8 51.8

One or more own children 793 449 344 100.0 100.0 100.0

All aged under 6 years 163 101 62 20.6 22.5 18.0

Some aged under 6 years.

some aged 6-17 years 182 103 79 23.0 22.9 23.0

All aged 6-17 years 449 245 204 56.6 54.6 59.3

Number of persons in familyTwo 631 411 220 37.9 41.0 33.1

Three 366 215 151 22.0 21.4 22.7

Four 422 230 192 25.3 22.9 28.9

Five or more 248 147 101 14.9 14.7 15.2

Number

Average number of persons

in family 3.42 3.34 3.54 — — —

— = Not applicable.

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.

30
Appendix table 10—Income of farm entrepreneurial households, 1987-88^

Household income Total Farm

operator

Farm

Income

only

Total Farm

operator

Farm

Income

only

—Thousands-- .....Percent--—

1987:

Total households 1,859 1,097 763 100.0 100.0 100.0

Household income (dollars)—

Under 5,000 98 74 25 5.3 6.7 3.3

5,000-9,999 104 73 31 5.6 6.7 4.1

10,000-14,999 172 140 33 9.3 12.8 4.3

15,000-19,999 165 120 45 8.9 10.9 5.9

20,000-24,999 227 147 81 12.2 13.4 10.6

25,000-29,999 195 104 90 10.5 9.5 11.8

30,000-34,999 171 90 82 9.2 8.2 10.7

35,000-39,999 112 67 45 6.0 6.1 5.9

40,000-44,999 130 66 64 7.0 6.0 8.4

45,000-49,999 94 44 50 5.1 4.0 6.6

50,000-59,999 128 63 65 6.9 5.7 8.5

60,000-74,999 111 49 63 6.0 4.5 8.3

75,000-99,999 78 32 46 4.2 2.9 6.0

100,000 and over 74 29 45

Dollars

4.0 2.6 5.9

Median household income 29,194 23,282

—Thousands—

34,664 —

—Perœnt—

—

1988:

Total households 1,848 1,096 752 100.0 100.0 100.0

Household Income (dollars)—

Undei 5,000 61 53 8 3.3 4.8 1.1

5,000-9,999 105 85 20 5.7 7.8 2.7

10,000-14,999 147 106 40 8.0 9.7 5.3

15,000-19,999 225 153 72 12.2 14.0 9.6

20,000-24,999 159 107 52 8.6 9.8 6.9

25,000-29,999 146 95 51 7.9 8.7 6.8

30,000-34,999 196 111 84 10.6 10.1 11.2

35,000-39,999 155 81 74 8.4 7.4 9.8

40,000-44,999 130 78 52 7.0 7.1 6.9

45,000-49,999 84 37 47 4.5 3.4 6.3

50,000-59,999 134 62 72 7.3 5.7 9.6

60,000-74,999 117 53 64 6.3 4.8 8.5

75,000-99,999 105 36 68 5.7 3.3 9.0

100,000 and over 86 38 48 4.7 3.5 6.4

Median household income

Dollars

32,066 27,315 38,310

— - Not applicable.

^Totals may not add due to rounding.

Source: U.S. Department of Commerœ. Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.

31
Appendix table 11—Income and poverty among farm entrepreneurial families, 1987-88^

Income and poverty Total Farm

operator

Farm

Income

only

Total Farm

operator

Farm

income

only

1987:

Total families

Family income (dollars)—

Under 5.000

5.000-9.999

10.000-14.999

15.000-19,999

20,000-24,999

25,000-29,999

30,000-34,999

35,000-39,999

40,000-49.999

50,000-74,999

75,000-99,999

100,000 and over

Below poverty level

Median family income

1988:

Total families

Family income (dollars)—

Under 5.000

5.000-9,999

10,000-14.999

15,000-19,999

20,000-24,999

25.000-29,999

30,000-34,999

35,000-39,999

40,000-49,999

50,000-74,999

75.000-99,999

100,000 and over

—Thousands— —Perœnt—--

1,661 992 669 100.0 100.0 100.0

77 65 12 4.6 6.6 1.8

75 56 19 4.5 5.6 2.8

135 109 26 8.1 11.0 3.9

136 103 33 8.2 10.4 4.9

214 142 72 12.9 14.3 10.8

184 97 87 11.1 9.8 13.0

151 87 64 9.1 8.8 9.6

108 63 45 6.5 6.4 6.7

213 105 108 12.8 10.6 16.1

223 104 119 13.4 10.5 17.8

75 32 43 4.5 3.2 6.4

71 29 42 4.3 2.9 6.3

147

30,314

1,667

52

94

121

195

133

135

188

151

195

230

99

73

122

26.082

'Thousands1.003

45

78

86

136

99

93

106

80

111

99

36

33

25

37,388

664

7

16

35

59

35

42

82

71

83

131

64

40

8.9

Dollars

12.3

00.0

—Perœnt100.0

3.1 4.5

5.6 7.8

7.3 8.6

11.7 13.6

8.0 9.9

8.1 9.3

11.3 10.6

9.1 8.0

11.7 11.1

13.8 9.9

5.9 3.6

4.4 3.3

3.7

100.0

1.1

2.4

5.3

8.9

5.3

6.3

12.3

10.7

12.5

19.7

9.6

6.0

Below poverty level

Median family Income

140

32,752

120

28.091

20

Dollars

38,943

8.4 12.0 3.0

^Totals may not add due to rounding.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr., Econ. Res. Serv.

32
Appendix table 12—Sources of income of farm entrepreneurial families, 1987-88

Source of jncome Total Farm

operator

Farm

income

only

1987:

Total families 1,661

Families receiving—

Wage and salary income 77.6

Self-employment incomeNo nfarm

Farm

Property incomeInterest

Dividends

Rent

Transfer paynnentsSocial security and railroad retirement income

Supplemental security income^

Public assistance and welfare^

Unemployment compensation, veterans'

paynnents, and workers' compensation

Retirennent^

Alimony and child support"*

1988:

Total families

Families receiving—

Wage and salary income 78.1

Self-employment incomeNonfarm 21.2

Farm 90.5

Property incomeInterest 77.9

Dividends 22.1

Rent 24.0

Transfer paymentsSocial security and railroad retirement income 20.6

Supplemental security income^ 2.2

Public assistance and welfare^ .5

Unemployment compensation, veterans'

payments, and workers' compensation 10.1

Retirement^ 9.1

Alimony and child support"^ 6.9

Thousands

992

Percent

69.1

68.3

15.9

84.2

74.1

19.7

22.9

25.0

2.2

.6

8.6

8.9

4.4

664

92.8

20.7 14.7 29.1

91.5 86.0 100.0

78.2 75.5 83.5

23.1 21.3 25.9

23.5 21.9 25.6

21.8 24.5 13.9

2.6 2.8 2.3

.6 .3 .3

8.1 6.0 12.5

10.9 11.6 9.4

5.4 4.2

Thousands

10.7

,667 1,003

Percent

664

92.8

29.1

100.0

83.5

25.9

25.6

13.9

2.3

.3

12.5

9.4

10.7

Includes payments made by Federal, State, and local welfare agencies to low-income persons who are aged 65 years and over blind

or disabled.

^Includes payments from Aid to Families with Dependent Children and general assistance.

Includes private pensions and annuities, military retirement, and Federal, State, or local government pensions.

Includes other regular contributions from persons not in the household.

Source: U.S. Department of Commerce, Bureau of the Census. Current Population Survey, March 1986-90. Unpublished tabulations

developed by the U.S. Dept. Agr. Econ. Res. Serv.

33
U.S. Department of Agriculture

Economic Research Service

SUMMARY OF REPORT

U.S. Farm Sector Continues Financial

Recovery Number 4, December 1992

In 1990, U.S. farm businesses continued to recover

from the financial problems encountered during the

early and mid-1980's, according to the most recent

Farm Costs and Returns Survey. Based on their overall

financial performance, a combination of net cash farm

income and debt/asset ratio, farm businesses in 1990

were in the strongest financial condition since 1984.

Gross income more than kept pace with rising expenses, even with dramatic reductions in Government

support. Following widespread drought in 1988, average net incomes rebounded strongly in 1989 and 1990.

After several years of reductions in the use of debt capital, 1990 saw a moderate rise in debt-financed capital

purchases. Farm businesses were also in a better position to service debt in 1990 than at any other time during the 1987-90 period.

Number of Vulnerable Forms Down

Each year, a segment of farms experiences extreme financial difficulties, but the size of that segment has been

steadily declining over the past few years. Roughly 7

percent of farms entered 1991 in a vulnerable financial

position, having a relatively high amount of debt in

combination with negative net income. This level of vulnerability compares with 11.6 percent in 1986.

Nearly two-thirds of vulnerable farms had gross

sales below $40,000. These small, part-time operations

are perhaps better able to cope with farm financial difficulties, since many have access to off-farm earnings to

support their farm business.

Even though the composition of vulnerable farms has

not changed much with regard to farm size, the geographic locations and production specialties associated

with vulnerable farms have changed considerably since

1987. The Com Belt had the largest concentration of vulnerable farms in both 1987 and 1990, yet its share of vulnerable farms went from 22 percent in 1987 to 16

percent in 1990. The Lakes States also had a substantial

Contact: Mitchell Morehart (202) 219-0800

reduction in the share of vulnerable farms. In contrast,

the Southeast and Southern Plains regions had the largest 1987-90 increase in vulnerable farms.

The proportion of vulnerable farms that specialized

in cash grains dropped from 26 percent in 1987 to 18 percent in 1990, the largest reduction for any production

specialty.

Incomes Vary by Region and

Commodity

The highest average net farm income occurred in the

Northern Plains, Mountain, and Pacific regions. Increases in expenses outpaced income growth in 1990 for

farms in the Northeast, Southeast, and Mountain regions, resulting in lower average net farm income than

in 1989. Production specialties that, on average, had

their most profitable year (since 1987) in 1990 were: tobacco; vegetables, fruits, or tree nuts; nursery or greenhouse; beef, hogs, or sheep; and other livestock.

To Order This Report...

The information presented here is excerpted

from Financial Performance of U.S. Farm Businesses, 1987-90, AER-661,byMitchenj. Morehart,

James D. Johnson, and David E. Banker. The cost is

$14.00.

To order, dial 1-80(^999-6779 (toll free in the

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US. Department of Agriculture

Economic Research Service

SUMMARY OF REPORT

Nevs^ State Rankings by Receipts from

Agricultural Commodities Number 3, December 1992

Cattle and calves, dairy products,corn,hogs, and

soybeans were the leading agricultural commodities (in terms of farm cash receipts) in 1991. Those

commodities had the same ranking in 1990. The leading

States for each commodity were as follows:

Cattle and calves: Texas, Nebraska, Kansas,

Colorado, and Oklahoma.

Dairy products: Wisconsin, California, New York,

Pennsylvania, and Minnesota.

Corn: Illinois, Iowa, Nebraska, Indiana, and

Minnesota.

Hogs: Iowa, Illinois, Minnesota, Nebraska, and

Indiana.

Soybeans: Illinois, Iowa, Minnesota, Indiana, and

Ohio.

Those findings come from a new ref)ort by USDA's

Economic Research Service, Ranking of States and Commodities by Cash Receipts, 1991, One set of tables lists the

25 leading agricultural commodities produced in each

State and the United States, ranked by value of cash receipts. Another set of tables lists the major producing

States for each of the 25 leading commodities and for several major commodity groupings.

Thirty States had livestock receipts exceeding crop receipts in 1991. In 13 States, the majority of receipts was

from sales of a single commodity, indicating a high degree of dependence on the production and market conditions for that commodity.

Commodity Dependence

In 11 States, one livestock commodity had receipts

for more than 50 percent of the State's total receipts.

Wyoming showed 73 percent of its agriculhiral receipts

as coming from cattle and calves; Kansas, 62 percent;

Colorado, 60 percent; Oklahoma, 58 percent; Nebraska,

54 percent; Nevada, 51 percent; Texas, 51 percent; and

New Mexico, 50 percent. Dairy accounted for 72 per=

cent of receipts in Vermont and 52 percent of receipts in

Wisconsin. Delaware relied on broilers for 63 percent

of receipts. In two States, greenhouse/nursery products

accounted for more that 50 percent of the State's total receipts: Alaska (57 percent) and Rhode Island (55 percent).

Agricultural Diversity

Eight States had sufficient diversification in their agricultural production that the leading commodity accounted for no more than 20 percent of sales receipts.

The States and their two leading commodities were:

California, dairy (14 percent) and greenhouse (11 percent); Oregon, cattle (18) and greenhouse (15); Florida,

oranges (19) and greenhouse (16); South Carolina, tobacco (16) and cattle (11); Minnesota, com (18) and

dairy (17); Virginia, cattle (20) and broilers (15); Ohio,

soybeans (20) and corn (20); and Washington, apples

(20) and dairy (14).

To Order This Report...

The information presented here is excerpted

from Ranking of States and Commodities by Cash

Receipts, SB-848, by Roger P. Strickland, Cheryl

Johnson, and Robert P. Williams. The cost is $11.00.

To order, dial 1-800-999-6779 (toll free in the

United States and Canada).

Please add 25 percent to foreign addresses

(including Canada). Charge your purchase to your

VISA or MasterCard. O send a check or purchase

order (made payable to ERS-NASS) to:

ERS-NASS

341 Victory Drive

Hemdon, VA 22070.

We'll fill your order by first-class mail.